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Select Medical (SEM) Dips More Than Broader Markets: What You Should Know

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Select Medical (SEM - Free Report) closed at $35.15 in the latest trading session, marking a -0.37% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.09%.

Investors will be hoping for strength from SEM as it approaches its next earnings release. In that report, analysts expect SEM to post earnings of $0.65 per share. This would mark year-over-year growth of 75.68%. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 4.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $5.9 billion. These totals would mark changes of +17.99% and +6.7%, respectively, from last year.

Any recent changes to analyst estimates for SEM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 47.35% higher. SEM is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, SEM is currently trading at a Forward P/E ratio of 15.56. This valuation marks a discount compared to its industry's average Forward P/E of 17.99.

Also, we should mention that SEM has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 1.33 at yesterday's closing price.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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